Question
In: Accounting
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below...
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:
| Amount | ||
| Total sales revenue | $ | 1,156,000 |
| Selling price per surfboard | $ | 340 |
| Variable selling expense per surfboard | $ | 40 |
| Variable administrative expense per surfboard | $ | 10 |
| Total fixed selling expense | $ | 280,000 |
| Total fixed administrative expense | $ | 250,000 |
| Merchandise inventory, beginning balance | $ | 94,000 |
| Merchandise inventory, ending balance | $ | 114,000 |
| Merchandise purchases | $ | 360,000 |
Required:
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter?
Solutions
Expert Solution
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ekkarill92 answered 1 year agoRelated Solutions
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below...
Haaki Shop Inc. is a large retailer of surfboards. The company
assembled the information shown below for the quarter ended May
31:
Amount
Total sales
revenue
$800,000
Selling price per
surfboard
400
Variable selling expense per surfboard
50
Variable administrative expense per
surfboard
20
Total fixed selling
expense
150,000
Total fixed administrative
expense
120,000
Merchandise inventory, beginning
balance
80,000
Merchandise inventory, ending balance
100,000
Merchandise
purchases
320,000...
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below...
Haaki Shop Inc. is a large retailer of surfboards. The company
assembled the information shown below for the quarter ended May
31:
Amount
Total sales revenue
$
1,600,000
Selling price per surfboard
$
400
Variable selling expense per surfboard
$
40
Variable administrative expense per surfboard
$
10
Total fixed selling expense
$
480,000
Total fixed administrative expense
$
450,000
Merchandise inventory, beginning balance
$
100,000
Merchandise inventory, ending balance
$
120,000
Merchandise purchases
$
360,000
Required:
1. Prepare a...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
861,000
Selling price per pair of skis
$
410
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
17
Total fixed selling expense
$
130,000
Total fixed administrative expense
$
105,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
110,000
Merchandise purchases
$
290,000
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
1,118,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
20
Total fixed selling expense
$
145,000
Total fixed administrative expense
$
115,000
Beginning merchandise inventory
$
80,000
Ending merchandise inventory
$
115,000
Merchandise purchases
$
315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount Sales $ 1,050,000
Selling price per pair of skis $ 420
Variable selling expense per pair of skis $ 46
Variable administrative expense per pair of skis $ 16
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 125,000
Beginning merchandise inventory $ 70,000
Ending merchandise inventory $ 115,000
Merchandise purchases $ 295,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
1,376,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
47
Variable administrative expense per pair of skis
$
15
Total fixed selling expense
$
150,000
Total fixed administrative expense
$
110,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
110,000
Merchandise purchases
$
295,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
946,000
Selling price per pair of skis
$
430
Variable selling expense per pair of skis
$
48
Variable administrative expense per pair of skis
$
17
Total fixed selling expense
$
130,000
Total fixed administrative expense
$
130,000
Beginning merchandise inventory
$
70,000
Ending merchandise inventory
$
120,000
Merchandise purchases
$
280,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31: Amount Sales $ 1,394,000 Selling price per pair of skis $
410 Variable selling expense per pair of skis $ 48 Variable
administrative expense per pair of skis $ 16 Total fixed selling
expense $ 135,000 Total fixed administrative expense $ 110,000
Beginning merchandise inventory $ 65,000 Ending merchandise
inventory $ 105,000 Merchandise purchases $ 315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
1,320,000
Selling price per pair of skis
$
400
Variable selling expense per pair of skis
$
46
Variable administrative expense per pair of skis
$
15
Total fixed selling expense
$
155,000
Total fixed administrative expense
$
125,000
Beginning merchandise inventory
$
80,000
Ending merchandise inventory
$
120,000
Merchandise purchases
$
315,000...
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...
The Alpine House, Inc., is a large retailer of snow skis. The
company assembled the information shown below for the quarter ended
March 31:
Amount
Sales
$
1,408,000
Selling price per pair of
skis
$
440
Variable selling expense per
pair of skis
$
50
Variable administrative expense
per pair of skis
$
16
Total fixed selling expense
$
150,000
Total fixed administrative
expense
$
115,000
Beginning merchandise
inventory
$
75,000
Ending merchandise
inventory
$
115,000
Merchandise purchases
$
285,000...
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